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Net 1 UEPS to appeal against ruling

September 14 2012 at 08:00am

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Dual-listed Net 1 UEPS Technologies had secured leave to appeal a high court ruling that its R10 billion contract to distribute social grants nationally was invalid and illegal, the technology company said yesterday. On August 28 the North Gauteng High Court ruled that the tender process followed by the SA Social Security Agency (Sassa) was improper. However, to ensure continuity for beneficiaries, the tender award was not set aside, so the contract remains valid. Net 1 subsidiary CashPaymaster Services, which manages social grant distributions, and Sassa will approach the Supreme Court of Appeal to challenge the ruling that allowed Absa AllPay to appeal against the continuance of the tender. AllPay was an unsuccessful bidder and maintained that the tender process was flawed. Net 1, listed on the JSE and Nasdaq in the US, said a court date had not been set. “The appeal could take several months to be finalised and the company cannot predict when [it] will be resolved or its ultimate outcome.” It said the appeal would not interrupt its right to continue to execute its contract. Net 1 was untraded at R78 on the JSE. – Asha Speckman


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